Amazon Reportedly Preparing To Launch Delivery Service For Businesses

(RTTNews) - Amazon.com Inc. (AMZN) is preparing to launch a delivery service for businesses, positioning it to compete directly with United Parcel Service Inc. and FedEx Corp, the Wall Street Journal reported citing people familiar with the matter.

Amazon expects to roll out the delivery service in Los Angeles in coming weeks with third-party merchants that sell goods via its website.. Amazon then aims to expand the service to more cities as soon as this year, the Journal reported.

While the program is being piloted with the company's third-party sellers, it is envisioned as eventually accommodating other businesses as well. Amazon is planning to undercut UPS and FedEx on pricing, although the exact rate structure is still unclear, the report said.